FedEx Corporation (FDX), United Parcel Service, Inc. (UPS): Is One A Better Investment Than The Other?

FedEx says that it has decided to cut back on its Asian exposure, and will concentrate on changing the way it handles its low yielding shipping traffic. One good advantage that FedEx Corporation (NYSE:FDX) has over UPS is that FedEx had won a seven year contract with the USPS, which is estimated to be worth around $10 billion.

The economy in possible rebound mode

The stock market has continued its upward trend, but the economy may recover soon. I don’t see monetary easing stopping anytime soon; after all, even the international markets are doing their own quantitative easing these days.

The economy has seen some recovery, so there may be hope yet for both United Parcel Service, Inc. (NYSE:UPS) and FedEx Corporation (NYSE:FDX). One company that can improve on an economic rebound is Lennar Corporation (NYSE:LEN), which surged on good earnings. The surge that Lennar Corporation (NYSE:LEN) saw was on the back of the highest increase in revenue since back in 2007. The company reported $0.26 per share on revenue of $989.9 million, compared to analysts only expecting earnings per share of $0.15 on revenue of $898 million. The company has seen its stock jump up over 242.38% over the last 5 years.

Lennar Corporation (NYSE:LEN) has a market cap of $6.8 billion, and if the economy continues to show signs of recovery then the company will continue its upward trajectory. That said, Lennar has been doing so well in this economy that they claimed that its net income tripled in the first quarter.

Final thought

Both UPS and FedEx Corporation (NYSE:FDX) may deliver investors profits if the economy continues to show signs of rebound over the next few months. If you’re a long term investor at heart, these stocks can deliver profits for years to come.

The article Can These Stocks Deliver profits? originally appeared on Fool.com and is written by Terry Chrisomalis.

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